Disposable income at 10-year low

Disposable income at 10-year low

October 08, 2007 10:59 AM

Research by the price comparison website uSwitch.com found that disposable income - the money left over after taxes, mortgage/rent payments and household bills - has fallen to just 32.6 per cent of gross income, compared with 34.5 per cent in 1997.

The biggest increases in household costs, apart from house prices, were income tax, national insurance and council tax. It cannot be clearer - higher taxes mean lower disposable income. It's time for politicians of all parties to realise that the best way to boost families' spending power is to cut the overall burden of tax.

Research by the price comparison website uSwitch.com found that disposable income - the money left over after taxes, mortgage/rent payments and household bills - has fallen to just 32.6 per cent of gross income, compared with 34.5 per cent in 1997.

The biggest increases in household costs, apart from house prices, were income tax, national insurance and council tax. It cannot be clearer - higher taxes mean lower disposable income. It's time for politicians of all parties to realise that the best way to boost families' spending power is to cut the overall burden of tax.

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Welcome to The TaxPayers' Alliance, Britain's grassroots campaigning group dedicated to reforming taxes, cutting spending and protecting taxpayers. If you like what we do, become a supporter now by signing up to our mailing list using the form below. John O'Connell, Chief Executive